FYI Resources (ASX:FYI) is entering the rare earths sector through an agreement for the acquisition of Minhub Operations.

The Minhub Project aims to process third-party mineral sands concentrate to separate the high-grade rare-earth minerals xenotime and monazite.

Under a Co-operation Agreement, Arafura Rare Earths (ASX:ARU) has the first right of offtake for the neodymium and praseodymium-rich monazite and heavy rare earth-rich xenotime concentrate from the project.

Shares of FYI Resources are up 15% at 1:05pm AEST.